In the latest episode of the NAREIT Podcast, Steven Marks, managing director with Fitch Ratings, offered his thoughts on the potential for stock exchange-listed REITs being taken private.
Hudgins Sees Upside in REITs in Second Half
In the latest episode of the NAREIT Podcast, Michael Hudgins, managing director and global strategist with EII Capital Management, discussed some of the major stories in real estate investment at the moment, including REIT valuations, the demand for real estate and the impact of secular factors on the U.S. real estate market.
Congress Progressing Toward Cybersecurity Enhancements
As businesses search for ways to better protect their information from online threats, the House of Representatives has passed two cybersecurity bills aimed at bolstering the sharing of information between the public and private sector.
On April 22, the House passed a bill that would encourage businesses and the federal government to share information on known cyber threats, the Protecting Cyber Networks Act (H.R. 1560), by a 307-116 margin.
REIT Returns Slide in April
REIT returns lost ground in April as broader macroeconomic factors exerted pressure throughout the sector.
The total returns of the FTSE/NAREIT All REIT Index slipped 4.7 percent in April, while the S&P 500 Index gained 1.0 percent. The yield on the 10-year Treasury note rose 0.1 percent for the month.
Jeffrey Langbaum, senior REIT analyst at Bloomberg Intelligence, said negative economic indicators released in April, including weaker-than-expected first quarter gross domestic product, caused a pullback in REIT share prices.
Misconceptions About REITs and Interest Rates
In the latest episode of the NAREIT Podcast, Joe Fisher, director with Deutsche Asset & Wealth Management, discussed research on the performance of REITs in periods of rising interest rates.
Rising interest rates are generally seen as a drag on REITs’ performance and returns, according to Fisher, because they raise the cost of capital, and real estate is a capital-intensive business.
Research Indicates Investors Missing Out on International Real Estate
North America represents about 30 percent of the total value of real estate globally, yet many investors fail to consider real estate investment opportunities in other global markets, according to an analysis of investment patterns.
Quick Study: REITs Lose Ground in April
In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, discussed a down month for REITs during April.
The total returns of the FTSE NAREIT All REITs Index dipped approximately 4.7 percent in April, following a gain of 1.2 percent the month before.
“It was a difficult month for REIT investors,” Case said, although he stressed that it wasn’t a good month for investors in any asset class.
FIRPTA Reform Legislation Introduced in House of Representatives
U.S. House Ways and Means Committee members Reps. Kevin Brady (R-TX) and Joseph Crowley (D-NY) introduced legislation April 30 intended to provide relief from the Foreign Investment in Real Property Tax Act (FIRPTA).
The measure was co-sponsored by 14 Republican and eight Democratic House members.
Changing Role of REIT General Counsels
Frank Burt, senior vice president and general counsel with Boston Properties, Inc. (NYSE: BXP) LLP, joined REIT.com for a video interview during REITWise 2015: NAREIT’s Law, Accounting and Finance Conference held in Phoenix.
EY Partner: Slow Progress Toward Global Convergence on Accounting Standards
Serena Wolfe, partner at professional services firm EY, joined REIT.com for a video interview during REITWise 2015: NAREIT’s Law, Accounting and Finance Conference held in Phoenix.
Wolfe commented on the possibility of reaching global convergence on accounting standards.
“We as a firm are fully supportive of a single set of high-quality financial standards that are applied globally,” she said. “I think we are moving towards that.”
